Imperial Petroleum Inc. Reports Fourth Quarter and Annual Financial Results for 2024

Imperial Petroleum Inc. reported Q4 2024 revenues of $26.2 million, with a net income of $3.9 million.

Quiver AI Summary

Imperial Petroleum Inc., a ship-owning company focused on petroleum products and transportation services, announced its unaudited financial results for the fourth quarter and full year ending December 31, 2024. The company reported an operational fleet utilization increase to 86% in Q4 2024 and nearly 180% more time charter days compared to the same quarter in 2023. Quarterly revenues fell to $26.2 million, a 12.4% decline due to lower spot market rates, resulting in a net income of $3.9 million compared to $6.5 million in Q4 2023. For the full year, revenues dropped by 19.7% to $147.5 million, and net income was $50.2 million, down from $71.1 million in 2023. Despite these decreases, the company's cash and cash equivalents grew significantly to $206.7 million with no debt, reflecting strong cash flow generation and strategic fleet expansion plans.

Potential Positives

• Fleet operational utilization increased significantly from 68.5% in Q4 2023 to 86.0% in Q4 2024, indicating improved efficiency.
• Cash and cash equivalents, including time deposits, rose by 66.7% to $206.7 million as of December 31, 2024, demonstrating strong liquidity.
• Despite a decrease in spot market rates, Imperial Petroleum achieved a positive net income of $50.2 million for the 12-month period ending December 31, 2024, indicating ongoing profitability.
• The company maintained a debt-free capital structure, reinforcing its financial stability and capacity for future growth.

Potential Negatives

• Net income for Q4 2024 decreased significantly to $3.9 million from $6.5 million in Q4 2023, indicating a decline in profitability.
• Revenues for the twelve months ended December 31, 2024, dropped by 19.7% compared to the previous year, primarily due to softer market spot rates.
• The company incurred a substantial foreign exchange loss of $3.3 million in Q4 2024, contrasting with a gain of $1.4 million in Q4 2023, which could signal instability in international operations or currency management.

FAQ

What were Imperial Petroleum Inc.'s revenues for Q4 2024?

Revenues for Q4 2024 amounted to $26.2 million, a 12.4% decline from $29.9 million in Q4 2023.

How did the fleet utilization change in 2024?

Fleet operational utilization increased to 86.0% in Q4 2024 from 68.5% in Q4 2023.

What was the net income for Imperial Petroleum in 2024?

The net income for the twelve months ended December 31, 2024, was $50.2 million, compared to $71.1 million in 2023.

What contributed to the decline in spot market rates?

The drop in spot market rates was primarily due to softer market conditions and decreased demand for tanker services.

What is the company's cash position as of December 31, 2024?

As of December 31, 2024, the company reported cash and cash equivalents of $206.7 million, a 66.7% increase year-over-year.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$IMPP Hedge Fund Activity

We have seen 15 institutional investors add shares of $IMPP stock to their portfolio, and 10 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• SUSQUEHANNA INTERNATIONAL GROUP, LLP added 528,360 shares (+101.0%) to their portfolio in Q3 2024, for an estimated $2,192,694
• SIMPLEX TRADING, LLC removed 445,645 shares (-72.6%) from their portfolio in Q4 2024, for an estimated $1,341,391
• DEUTERIUM CAPITAL MANAGEMENT, LLC added 423,183 shares (+43.6%) to their portfolio in Q4 2024, for an estimated $1,273,780
• ACADIAN ASSET MANAGEMENT LLC added 272,489 shares (+196.5%) to their portfolio in Q4 2024, for an estimated $820,191
• CITADEL ADVISORS LLC added 171,861 shares (+296.2%) to their portfolio in Q3 2024, for an estimated $713,223
• ALLEGHENY FINANCIAL GROUP LTD added 155,994 shares (+inf%) to their portfolio in Q3 2024, for an estimated $647,375
• TOWERVIEW LLC added 122,510 shares (+51.6%) to their portfolio in Q4 2024, for an estimated $368,755

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

ATHENS, Greece, Feb. 13, 2025 (GLOBE NEWSWIRE) -- IMPERIAL PETROLEUM INC. (NASDAQ: IMPP, the “Company”), a ship-owning company providing petroleum products, crude oil and dry bulk seaborne transportation services, announced today its unaudited financial and operating results for the fourth quarter and twelve months ended December 31, 2024.

OPERATIONAL AND FINANCIAL HIGHLIGHTS

• 
  Fleet operational utilization of 86.0% in Q4 24’ versus 68.5% in Q4 23’.
  


• 
  Almost 180% increase in Q4 24’ time charter days compared to Q4 23’, as two of our product tankers and one newly acquired bulk carrier were under time charter (“TC”) employment for the whole period.
  


• 
  For the 12M 24’ period our operational utilization was 78.3%. 69% of our fleet calendar days were dedicated to spot activity, while 29% to time charter activity.
  


• 
  Delivery of the product tanker, Clean Imperial on January 10, 2025. With this vessel addition, our tanker fleet totals nine ships.
  


• 
  Revenues of $26.2 million in Q4 24’ compared to $29.9 million in Q4 23’, representing a 12.4% decline due primarily to decreased spot market rates.
  


• 
  Net income of $3.9 million in Q4 24’ compared to $6.5 million in Q4 23’. In Q4 24’ we incurred a $3.3 million foreign exchange loss.
  


• 
  Cash and cash equivalents including time deposits of $206.7 million as of December 31, 2024, compared to $124.0 million as of December 31, 2023, representing a 66.7% increase.
  


• 
  For the 12M 24’ period our net income was $50.2 million, while our operating cash flow amounted to $77.7 million.
  


• 
  Recurring profitability and a debt-free capital structure facilitate robust cash flow generation and low breakeven points.
  

Fourth Quarter 2024 Results:

• 
  
  Revenues
  
  for the three months ended December 31, 2024 amounted to $26.2 million, a decrease of $3.7 million, or 12.4%, compared to revenues of $29.9 million for the three months ended December 31, 2023, primarily due to a decrease in the spot market rates.
  


• 
  
  Voyage expenses and vessels’ operating expenses
  
  fo        r the three months ended December 31, 2024 were $8.5 million and $6.7 million, respectively, compared to $13.8 million and $5.7 million, respectively, for the three months ended December 31, 2023. The $5.3 million decrease in voyage expenses is mainly attributed to increased time charter activity leading to a decline of spot days by 10.3%. The decline in spot days along with the decrease in the Suez Canal transits compared to the same period of last year, led to decreased bunker consumption by 15.6% and lower port expenses by 44.9%. The $1.0 million increase in vessels’ operating expenses is primarily due to the increased size of our fleet by an average of 2.0 vessels between the two periods.
  


• 
  
  Drydocking costs
  
  for the three months ended December 31, 2024 and 2023 were $0.2 million and $2.5 million, respectively. This decrease is due to the fact that during the three months ended December 31, 2024, no vessel underwent drydocking and charges related only to a drydocking which took place at the end of the third quarter of 2024, while one of our suezmax tankers and one of our handysize dry vessels underwent drydocking in the fourth quarter of last year.
  


• 
  
  General and administrative costs
  
  for the three months ended December 31, 2024 and 2023 were $1.0 million and $1.2 million, respectively. This change is mainly attributed to the decrease in stock-based compensation costs.
  


• 
  
  Depreciation
  
  for the three months ended December 31, 2024 and 2023 was $4.5 million and $3.5 million, respectively. The change is attributable to the increase in the average number of vessels in our fleet.
  


• 
  
  Management fees
  
  for each of the three months ended December 31, 2024 and 2023 were $0.4 million.
  


• 
  
  Interest and finance costs
  
  for the three months ended December 31, 2024 and 2023 were $0.3 million and $0.01 million, respectively. The $0.3 million of costs for the three months ended December 31, 2024 relate mainly to accrued interest expense – related party in connection with the $14.0 million, part of the acquisition price of our bulk carrier, Neptulus, which is payable by May 2025.
  


• 
  
  Interest income
  
  for the three months ended December 31, 2024 was $2.3 million as compared to $2.0 million for the three months ended December 31, 2023. The $0.3 million increase is mainly attributed to a higher amount of funds placed under time deposits.
  


• 
  
  Foreign exchange gain/(loss)
  
  for the three months ended December 31, 2024 was a loss of $3.3 million as compared to a gain of $1.4 million for the three months ended December 31, 2023. The $3.3 million foreign exchange loss for the three months ended December 31, 2024, is mainly attributed to the decline in the euro/dollar exchange rate and to the higher amount of funds placed under time deposits in euro.
  


• 
  As a result of the above, for the three months ended December 31, 2024, the Company reported
  
  net income
  
  of $3.9 million, compared to net income of $6.5 million for the three months ended December 31, 2023. Dividends paid on Series A Preferred Shares amounted to $0.4 million for the three months ended December 31, 2024. The
  
  weighted average number of shares of common stock outstanding, basic
  
  , for the three months ended December 31, 2024 was 32.7 million.
  
  Earnings per share, basic and diluted,
  
  for the three months ended December 31, 2024 amounted to $0.10 and $0.10, respectively, compared to loss per share, basic and diluted, of $0.02 and $0.02, respectively, for the three months ended December 31, 2023.
  


• 
  
  Adjusted net income
  
  
  ¹
  
  was $4.6 million corresponding to an Adjusted EPS
  
  ¹
  
  , basic of $0.12 for the three months ended December 31, 2024 compared to an Adjusted net income of $7.2 million corresponding to an Adjusted EPS, basic, of $0.01 for the same period of last year.
  


• 
  
  EBITDA
  
  
  ¹
  
  for the three months ended December 31, 2024 amounted to $6.4 million, while
  
  Adjusted EBITDA
  
  
  ¹
  
  for the three months ended December 31, 2024 amounted to $7.1 million.
  


• 
  An average of 11.0 vessels were owned by the Company during the three months ended December 31, 2024 compared to 9.0 vessels for the same period of 2023.
  

Twelve months 2024 Results:

• 
  
  Revenues
  
  for the twelve months ended December 31, 2024 amounted to $147.5 million, representing a decrease of $36.2 million, or 19.7%, compared to revenues of $183.7 million for the twelve months ended December 31, 2023, primarily due to softer market spot rates. As of the end of 2024, daily spot market rates were about $22,000 for standard product tankers versus $33,000 as of the end of the same period of 2023 and $30,000 for standard suezmax tankers as opposed to $60,000 as of the end of the same period of 2023.
  


• 
  
  Voyage expenses and vessels’ operating expenses
  
  for the twelve months ended December 31, 2024 were $52.0 million and $26.4 million, respectively, compared to $62.5 million and $25.6 million, respectively, for the twelve months ended December 31, 2023. The $10.5 million decrease in voyage expenses is mainly attributed to a reduction in port expenses due to decreased transits through the Suez Canal and a decrease in voyage commissions resulting from lower market rates and consequently softer revenue generation. The $0.8 million increase in vessels’ operating expenses was primarily due to the increase in the average number of vessels.
  


• 
  
  Drydocking costs
  
  for the twelve months ended December 31, 2024 and 2023 were $1.7 million and $6.6 million, respectively. This decrease is due to the fact that during the twelve months ended December 31, 2024 two tanker vessels underwent drydocking, while in the same period of last year three of our product tankers, one of our suezmax tankers and two of our drybulk carriers underwent drydocking.
  


• 
  
  General and administrative costs
  
  for each of the twelve months ended December 31, 2024 and 2023 were $4.9 million.
  


• 
  
  Depreciation
  
  for the twelve months ended December 31, 2024 was $17.0 million, a $1.4 million increase from $15.6 million for the same period of last year, mainly due to the depreciation of the vessels added in the fleet during 2024.
  


• 
  
  Management fees
  
  for the twelve months ended December 31, 2024 and 2023 were $1.7 million and $1.6 million, respectively. The increase of $0.1 million is attributable to the slight increase in the average number of vessels in our fleet.
  


• 
  
  Other operating income
  
  for the twelve months ended December 31, 2024 was $1.9 million and related to the collection of a claim in connection with repairs undertaken in prior years.
  


• 
  
  Net loss on sale of vessel/ Net gain on sale of vessel – related party
  
  for the twelve months ended December 31, 2024 was a loss of $1.6 million and related to the sale of the Aframax tanker Gstaad Grace II to a third party whereas net gain on sale of vessel for the twelve months ended December 31, 2023 was $8.2 million and related to the sale of the Aframax tanker Afrapearl II (ex. Stealth Berana) to C3is Inc., a related party.
  


• 
  
  Impairment loss
  
  for the twelve months period ended December 31, 2024 and 2023 stood at nil and $9.0 million, and related to the spin-off of two drybulk carriers to C3is Inc. in 2023. The decline of drybulk vessels’ fair values, at the time of the spin off, compared to one year before when these vessels were acquired resulted in the incurrence of impairment loss.
  


• 
  
  Interest and finance costs
  
  for the twelve months ended December 31, 2024 and 2023 were $0.4 million and $1.8 million, respectively. The $0.4 million of costs for the twelve months ended December 31, 2024 relate mainly to accrued interest expense – related party in connection with the $14.0 million, part of the acquisition price of our bulk carrier, Neptulus, which is payable by May 2025. The $1.8 million of costs for the twelve months ended December 31, 2023 related mainly to $1.3 million of interest charges incurred up to the full repayment of all outstanding loans concluded in April 2023 along with the full amortization of $0.5 million of loan related charges following the repayment of the Company’s outstanding debt.
  


• 
  
  Interest income
  
  for the twelve months ended December 31, 2024 and 2023 was $8.3 million and $5.8 million, respectively. The increase is mainly attributed to the interest earned from the time deposits held by the Company as well as the interest income – related party for the twelve months ended December 31, 2024 in connection with the $38.7 million of the sale price of the Aframax tanker Afrapearl II (ex. Stealth Berana) which was received in July 2024.
  


• 
  As a result of the above, the Company reported
  
  net income
  
  for the twelve months ended December 31, 2024 of $50.2 million, compared to a net income of $71.1 million for the twelve months ended December 31, 2023. The
  
  weighted average number of shares outstanding, basic,
  
  for the twelve months ended December 31, 2024 was 29.9 million.
  
  Earnings per share, basic and diluted
  
  , for the twelve months ended December 31, 2024 amounted to $1.54 and $1.40, respectively, compared to earnings per share, basic and diluted, of $3.22 and $2.93 for the twelve months ended December 31, 2023.
  


• 
  
  Adjusted Net Income
  
  was $55.1 million corresponding to an Adjusted EPS, basic of $1.70 for the twelve months ended December 31, 2024 compared to adjusted net income of $74.4 million, corresponding to an Adjusted EPS, basic of $3.39 for the same period of last year.
  


• 
  
  EBITDA
  
  for the twelve months ended December 31, 2024 amounted to $59.2 million while
  
  Adjusted EBITDA
  
  for the twelve months ended December 31, 2024 amounted to $64.2 million.
  


• 
  An average of 10.4 vessels were owned by the Company during the twelve months ended December 31, 2024 compared to 10.0 vessels for the same period of 2023.
  


• 
  As of December 31, 2024,
  
  cash and cash equivalents including time deposits
  
  amounted to $206.7 million and total bank debt amounted to nil.
  

¹

EBITDA, Adjusted EBITDA, Adjusted Net Income and Adjusted EPS are non-GAAP measures. Refer to the reconciliation of these measures to the most directly comparable financial measure in accordance with GAAP set forth later in this release. Reconciliations of Adjusted Net Income, EBITDA and Adjusted EBITDA to Net Income are set forth below.

Fleet Employment Table

As of February 13, 2025, the profile and deployment of our fleet is the following:

CEO


Harry Vafias Commented

For yet another year Imperial Petroleum demonstrated exceptional results; we continued to be consistent with profitability, cash flow generation and fleet growth across the quarters. Market conditions in 2024 were somewhat softer than 2023 when tanker rates oscillated around all time high levels. Nevertheless, our debt free fleet of eleven vessels managed to generate $50 million of profit and maintain an enviable cash base of $207 million. In the period ahead our key focus is to materialize our already announced fleet growth plans, sustain our profitable momentum and as always, seek opportunities to enhance the value of our Company.

Conference Call details:

On February 13, 2025 at 10:00 am ET, the company’s management will host a conference call to discuss the results and the company’s operations and outlook.

Online Registration:

Conference call participants should pre-register using the below link to receive the dial-in numbers and a personal PIN, which are required to access the conference call.

https://register.vevent.com/register/BI127dcd86b3bd4efc8d71152e3b8a8800

Slides and audio webcast:

There will also be a live and then archived webcast of the conference call, through the IMPERIAL PETROLEUM INC. website (www.ImperialPetro.com). Participants to the live webcast should register on the website approximately 10 minutes prior to the start of the webcast.

About IMPERIAL PETROLEUM INC.

IMPERIAL PETROLEUM INC. is a ship-owning company providing petroleum products, crude oil and drybulk seaborne transportation services. The Company owns a total of twelve vessels on the water - seven M.R. product tankers, two suezmax tankers and three handysize drybulk carriers - with a total capacity of 751,000 deadweight tons (dwt), and has contracted to acquire an additional seven drybulk carriers of 443,000 dwt aggregate capacity. Following these deliveries, the Company’s fleet will count a total of 19 vessels. IMPERIAL PETROLEUM INC.’s shares of common stock and 8.75% Series A Cumulative Redeemable Perpetual Preferred Stock are listed on the Nasdaq Capital Market and trade under the symbols “IMPP” and “IMPPP,” respectively.

Forward-Looking Statements

Matters discussed in this release may constitute forward-looking statements. Forward-looking statements reflect our current views with respect to future events and financial performance and may include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements, which are other than statements of historical facts. The forward-looking statements in this release are based upon various assumptions, many of which are based, in turn, upon further assumptions, including without limitation, management’s examination of historical operating trends, data contained in our records and other data available from third parties. Although IMPERIAL PETROLEUM INC. believes that these assumptions were reasonable when made, because these assumptions are inherently subject to significant uncertainties and contingencies which are difficult or impossible to predict and are beyond our control, IMPERIAL PETROLEUM INC. cannot assure you that it will achieve or accomplish these expectations, beliefs or projections. Important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements include the strength of world economies and currencies, geopolitical conditions, including any trade disruptions resulting from tariffs imposed by the United States or  other countries, general market conditions, including changes in charter hire rates and vessel values, charter counterparty performance, changes in demand that may affect attitudes of time charterers to scheduled and unscheduled drydockings, changes in IMPERIAL PETROLEUM INC’s operating expenses, including bunker prices, drydocking and insurance costs, ability to obtain financing and comply with covenants in our financing arrangements, actions taken by regulatory authorities, potential liability from pending or future litigation, domestic and international political conditions, the conflict in Ukraine and related sanctions, the conflicts in the Middle East, potential disruption of shipping routes due to ongoing attacks by Houthis in the Red Sea and Gulf of Aden or accidents and political events or acts by terrorists.

Risks and uncertainties are further described in reports filed by IMPERIAL PETROLEUM INC. with the U.S. Securities and Exchange Commission.

Fleet List and Fleet Deployment



For information on our fleet and further information:


Visit our website at

www.ImperialPetro.com

Company Contact:



Fenia Sakellaris


IMPERIAL PETROLEUM INC.


E-mail:

info@ImperialPetro.com

Fleet Data:



The following key indicators highlight the Company’s operating performance during the periods ended December 31, 2023 and 2024.

1)

Average number of vessels

is the number of owned vessels that constituted our fleet for the relevant period, as measured by the sum of the number of days each vessel was a part of our fleet during the period divided by the number of calendar days in that period.


2)

Total calendar days

for fleet are the total days the vessels we operated were in our possession for the relevant period including off-hire days associated with major repairs, drydockings or special or intermediate surveys.


3)

Total voyage days

for fleet reflect the total days the vessels we operated were in our possession for the relevant period net of off-hire days associated with major repairs, drydockings or special or intermediate surveys.


4)

Fleet utilization

is the percentage of time that our vessels were available for revenue generating voyage days, and is determined by dividing voyage days by fleet calendar days for the relevant period.


5)

Total charter days

for fleet are the number of voyage days the vessels operated on time or bareboat charters for the relevant period.


6)

Total spot market charter days

for fleet are the number of voyage days the vessels operated on spot market charters for the relevant period.


7)

Fleet operational utilization

is the percentage of time that our vessels generated revenue, and is determined by dividing voyage days excluding commercially idle days by fleet calendar days for the relevant period.

Reconciliation of Adjusted Net Income, EBITDA, adjusted EBITDA and adjusted EPS


:

Adjusted net income represents net income before impairment loss, net (gain)/loss on sale of vessel and share based compensation. EBITDA represents net income before interest and finance costs, interest income and depreciation. Adjusted EBITDA represents net income before interest and finance costs, interest income, depreciation, impairment loss, net (gain)/loss on sale of vessel and share based compensation.


Adjusted EPS represents Adjusted net income attributable to common shareholders divided by the weighted average number of shares. EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are not recognized measurements under U.S. GAAP. Our calculation of EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS may not be comparable to that reported by other companies in the shipping or other industries. In evaluating Adjusted EBITDA, Adjusted net income and Adjusted EPS, you should be aware that in the future we may incur expenses that are the same as or similar to some of the adjustments in this presentation.

EBITDA, adjusted EBITDA, adjusted net income and adjusted EPS are included herein because they are a basis, upon which we and our investors assess our financial performance. They allow us to present our performance from period to period on a comparable basis and provide investors with a means of better evaluating and understanding our operating performance.

Imperial Petroleum Inc.




Unaudited Consolidated Statements of Income




(Expressed in United States Dollars, except for number of shares)

Imperial Petroleum Inc.




Unaudited Consolidated Balance Sheets




(Expressed in United States Dollars)

Imperial Petroleum Inc.




Unaudited Consolidated Statements of Cash Flows




(Expressed in United States Dollars